National Assembly discusses Vietnam Airlines restructuring plan
VOV.VN - The National Assembly is scheduled to examine the restructuring plan of the Vietnam Airlines Joint Stock Company in its ongoing eighth session in Hanoi on November 25 to help the aviation firm to overcome the consequences caused by the COVID-19 pandemic.
Vietnam Airlines has completed a comprehensive restructuring plan aimed at enhancing its competitiveness and achieving sustainable recovery and development by 2035.
To date, the firm has fully restored its international flight network following the COVID-19 pandemic and has introduced several new routes, with the latest connecting Hanoi and Ho Chi Minh City to Munich (Germany). It has reduced various costs, such as financial, sales, and management expenses. Notably, financial expenses, primarily interest payments, are only 30% of what they were in quarter III 2023. These factors contributed to a consolidated post-tax profit of approximately VND862 billion.
However, the recent positive performance has not yet enabled Vietnam Airlines to fully overcome its challenges or completely recover from the lingering impacts of the COVID-19 pandemic.
While the airline’s production and business activities are improving significantly, its consolidated equity as of September 30, 2024, remains negative at VND11,086 billion, down from negative VND17,025 billion at the beginning of the year.
According to the restructuring plan, the firm proposed issuing additional shares to existing shareholders to increase charter capital by a maximum of VND22,000 billion. Nevertheless, the implementation faces obstacles due to regulations under the Securities Law and the Law on Management and Use of State Capital Invested in Production and Business.
Deputy Prime Minister cum Finance Minister Ho Duc Phoc will present the Vietnam Airlines report and answer relevant questions to be raised by National Assembly deputies.
